The market demand curve and the market supply curve of rice are given by:

q_D = 450 – p for 0<p<450

q_S = 150 + p

What will be equilibrium price?

150

The correct answwer is option 1: 150

Since at equilibrium price market clears, we find the equilibrium price by equating market demand and supply and solve for p.

$Q_d$ = $Q_s$ 

450-p = 150+ p

300 = 2p

150 = p

Thus, the equilibrium price is 150.